Save Article

Fast-Growing Cities
At Risk for Bank Woes

Updated Jan. 9, 2001 11:59 p.m. ET

The Federal Deposit Insurance Corp. has identified 21 fast-growing metro areas that could be vulnerable to bad debt and bank failures. These areas' growth has fueled aggressive lending, particularly in high-risk categories such as construction and commercial real estate.

The FDIC lists metros that are above average on three criteria -- economic growth, loan growth and exposure to high-risk loans -- the same combination that preceded high rates of bank failures in the early '90s recession. For example, the three fastest-growing...